Question 1
When the price of a good falls and customers tend to buy more of it instead of other goods, economists call this the ________ effect.
◦ diminishing marginal utility
◦ substitution
◦ income
◦
ceteris paribusQuestion 2
A demand curve for a good is constructed by holding constant
◦ income.
◦ the quantity of production.
◦ the price of the good.
◦ all of the above.